U.S. · Tax forms
Form 1041 line 21, exemption.
Four fixed amounts, picked by the kind of estate or trust.
Line 21 (“Exemption”) is a fixed amount by type: $600 for a decedent’s estate, $300 for a trust required to distribute all income currently, $5,100 for a qualified disability trust, and $100 for any other trust.
Look up an entity type
Result
Exemption amounts, 2025 instructions
| Entity | Meaning | What the IRS says |
|---|---|---|
| Decedent’s estate | $600 | A decedent’s estate is allowed a $600 exemption |
| Trust required to distribute all income currently | $300 | Allowed even if it distributed amounts other than income during the tax year |
| Qualified disability trust | $5,100 | Allowed a $5,100 exemption, not subject to phaseout |
| Any other trust | $100 | A trust not described above is allowed a $100 exemption |
| Qualified disability trust, test 1 | Described trust | Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established solely for the benefit of an individual under 65 years of age who is disabled |
| Qualified disability trust, test 2 | Beneficiaries disabled | All beneficiaries determined by the Commissioner of Social Security to have been disabled for some part of the tax year within the meaning of 42 U.S.C. 1382c(a)(3) |
| Corpus reverting later | Does not defeat the test | A trust does not fail test 2 just because the corpus may revert to a person who is not disabled after the trust ceases to have any disabled beneficiaries |
Where line 21 sits
Line 22 adds lines 18 through 21: the income distribution deduction, the estate tax deduction, the qualified business income deduction and the exemption. Line 23 subtracts that total from adjusted total income on line 17.
Picking the right one
The amounts are alternatives, not additive. A decedent’s estate takes $600. Among trusts, the instructions treat required-current-distribution trusts, qualified disability trusts and all other trusts separately, with $100 as the amount for a trust not described above.
The disability test
A qualified disability trust must meet both parts of the definition. The instructions say the $5,100 amount is not subject to phaseout.
Worked example
The Okafor Living Trust (made up) is a non-grantor trust whose governing instrument requires all income to be distributed currently. It also distributed some principal. Line 21 shows $300. A decedent’s estate with the same other numbers would enter $600, and a trust that retains income would enter $100. Names and figures are made up.
More line pages in this set
Related lines: Form 1041 Line 23, Form 1041 Line 15a, Form 1041 Line 11.
Sources
- Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 1041 (2025), U.S. Income Tax Return for Estates and Trusts: the printed line wording and arithmetic on the form (Form 1041 (2025), created 10/28/25). Read November 2, 2026.
Tax year 2025 forms and instructions: Form 1041 (2025) and its 2025 instructions. Line numbers and labels were read from the IRS PDF and instructions on the date read and can change between tax years, so check them against the form for your year. Names in worked examples are made up.
Frequently asked questions
What is the exemption on Form 1041 line 21?
$600 for a decedent’s estate, $300 for a trust required to distribute all income currently, $5,100 for a qualified disability trust, and $100 for any other trust, per the 2025 instructions.
Does a trust that distributes principal still get $300?
Yes, if its governing instrument requires all income to be distributed currently. The instructions say the $300 is allowed even if it distributed amounts other than income during the year.
What is a qualified disability trust?
A trust described in 42 U.S.C. 1396p(c)(2)(B)(iv), established solely for a disabled individual under 65, all of whose beneficiaries are determined by the Commissioner of Social Security to have been disabled for part of the tax year.
Is the $5,100 exemption phased out?
The instructions say it is not subject to phaseout.
What is the exemption for a trust that accumulates income?
$100, as a trust not described in the other categories.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.